Topics covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Important aspects of governance, transparency and accountability.
Open Acreage Licensing Policy
What to study?
For Prelims: OALP, HELP.
For Mains: Need for HELP and its significance.
Context: Government has launched the bidding process offering 11 areas in oil and gas blocks under Open Acreage Licensing Policy Round-V (OALP-V).
What is Open Acreage Licensing Policy (OALP)?
A critical part of the Hydrocarbon Exploration and Licensing Policy.
Provides uniform licences for exploration and production of all forms of hydrocarbons, enabling contractors to explore conventional as well as unconventional oil and gas resources.
Revenue- sharing model:
Fields are offered under a revenue-sharing model and throw up marketing and pricing freedom for crude oil and natural gas produced.
How it works?
Under the OALP, once an explorer selects areas after evaluating the National Data Repository (NDR) and submits the EoI, it is to be put up for competitive bidding and the entity offering the maximum share of oil and gas to the government is awarded the block.
What is NDR?
NDR has been created to provide explorers’ data on the country’s repositories, allowing them to choose fields according to their capabilities. Data received through the National Seismic Programme, an in-depth study of 26 sedimentary basins, are continuously being added to the NDR.
What is HELP?
The Hydrocarbon Exploration and Licensing Policy (HELP) replacing the erstwhile New Exploration Licensing Policy (NELP) was approved in March 2016.
The main features of HELP are Revenue Sharing Contract, single Licence for exploration and production of conventional as well as unconventional Hydrocarbon resources, marketing & pricing freedom, etc.